LEXINGTON, NC - Linwood Furniture, struggling since March under Chapter 11 protection from creditors, asked the court to allow it sell its assets, possibly for $3 million. Linwood suggests it could find a foreign wood products firm interested in quickly establishing a U.S. production operation.
If not, "The debtor does not have sufficient cash resources to achieve a successful turnaround or operate until a plan of reorganization can be confirmed," according to the filing. Other possible buyers include investors that have been funding its efforts at a turnaround.
The court will decide whether to accept Linwood Furniture's latest plan at a July 19 hearing. If it does the auciton would be scheduled August 10.
Linwood Furniture's 103 employees have been handling contract production for Kimball and Bob Timberlake Inc., as well as customized furniture for retailers. Kimball sometimes paid for work in progress, and court filings discuss whether the asset sale should be structured to protect Kimball over Linwood's liability to it.
Linwood, which makes World of Bob Timberlake furniture as a subcontractor to Century Furniture, hoped it could gain enough momentum from the Made in America trend in furnishing manufacture.
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